ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced “Angel Fund” a new category of Venture Capital Fund which invests primarily in unlisted securities or financial assets of early-stage start-up companies.
The SECP has issued a notification here on Monday to amend the Private Fund Regulations, 2015.
According to the SECP, the “Angel Fund” means a sub-category of Venture Capital Fund established in a closed-end Structure which invests primarily in unlisted securities or financial assets of early-stage start-up companies other than Hedge Funds.
The “Eligible Investor” included an individual who has earned an income of at least Rs. 5 million in the preceding financial year or who has net assets of at least Rs. 15 million excluding the value of personal residence and who furnishes a declaration to the Private Fund Management Company that he understands the risks of investment in a Private Fund; a qualified Institutional buyer.
Under the revised regulations, “Financial Close” means the stage when all investment and financing arrangements have been made, funds have been received and the process for commencement of active investment out of Private Fund initiated in accordance with the investment policy as provided in the constitutive documents.
The “Fund of Funds” means a sub-category of a Private Fund established in a close-end structure or open-end structure which invests primarily in units of other Private Funds.
The “Hedge Fund” means a Private Fund established in either open-end or closed-end structure which employs diverse trading strategies and primarily invests and trades in Portfolio Securities and other financial Assets and “Impact Fund” means a sub-category of a Private Fund established in a closed-end structure which invests primarily in Unlisted Securities or financial assets other than derivatives of socially responsible companies focusing on environmental, social and governance issues.
The “Infrastructure Fund” means a sub-category of Private Fund established in a closed-end structure which invests primarily in Unlisted Securities or financial assets other than derivatives of companies engaged in or formed for the purpose of operating, developing or holding infrastructure projects including transportation, utilities, and energy etc, SECP added.
Copyright Business Recorder, 2025
